The effect of an electric field on local domain structure near a 24° tilt grain boundary in a 200 nm-thick Pb(Zr0.2Ti0.8)O3 bi-crystal ferroelectric film was probed using synchrotron nanodiffraction. The bi-crystal film was grown epitaxially on SrRuO3-coated (001) SrTiO3 24° tilt bi-crystal substrates. From the nanodiffraction data, real-space maps of the ferroelectric domain structure around the grain boundary prior to and during application of a 200 kV cm−1 electric field were reconstructed. In the vicinity of the tilt grain boundary, the distributions of densities of c-type tetragonal domains with the c axis aligned with the film normal were calculated on the basis of diffracted intensity ratios of c- and a-type domains and reference powder diffraction data. Diffracted intensity was averaged along the grain boundary, and it was shown that the density of c-type tetragonal domains dropped to ∼50% of that of the bulk of the film over a range ±150 nm from the grain boundary. This work complements previous results acquired by band excitation piezoresponse force microscopy, suggesting that reduced nonlinear piezoelectric response around grain boundaries may be related to the change in domain structure, as well as to the possibility of increased pinning of domain wall motion. The implications of the results and analysis in terms of understanding the role of grain boundaries in affecting the nonlinear piezoelectric and dielectric responses of ferroelectric materials are discussed.